SEC Announces McAfee Fraud Payout - TheStreet

SEC Announces McAfee Fraud Payout

The SEC has announced that around $67 million will be distributed to investors following McAfee's 2006 financial fraud settlement.
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SANTA CLARA, Calif. (

TheStreet

) -- The

Securities and Exchange Commission

has announced that around $67 million will be distributed to investors following

McAfee's

(MFE)

2006 financial fraud settlement.

The security software specialist, which was formerly known as Network Associates, agreed to pay $50 million in penalties to settle SEC charges that it defrauded investors by overstating revenue and earnings. A "fair fund" for distributing the money was subsequently created, and officials say that more than 16,000 McAfee investors harmed by the fraud are in line for a payout.

Proceeds from three other settlements related to the McAfee fraud have also been added to the Fair Fund, bringing its total value to around $67 million.

McAfee CEO Dave DeWalt,

who joined the company almost three years ago

, has worked hard to draw a line under McAfee's former accounting problems, transforming the software maker into one of the security sector's

heaviest hitters

.

Repeatedly highlighted as an

attractive option

for investors, McAfee was one of

TheStreet's

top tech picks for 2009

.

Seen as one of the

best-positioned

cybersecurity

stocks, McAfee has been

clawing away

at rival

Symantec's

(SYMC) - Get Report

market share.

McAfee comfortably beat analysts' sales estimate in its

fourth-quarter results

and gave bullish guidance for the current quarter.

The company's shares dipped 26 cents, or 0.65%, to $39.98 on Monday, as the

Nasdaq

slipped 0.05%.

-- Reported by James Rogers in New York

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